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Firestone
Diamonds plc
Botswana operations update
LONDON: 6 October 2008
Firestone
Diamonds plc, ("Firestone" or "the Company"), the
AIM-quoted diamond mining and exploration company (ticker: AIM:FDI), today
announces an update on evaluation work at its BK11, BK16
and Tsabong projects in Botswana.
HIGHLIGHTS
BK11
·
Drilling and bulk sampling ahead of schedule;
results expected Q4 2008
·
New diamond recovery facility constructed in Gaborone
·
Pilot plant construction on
schedule
·
Significant progress made with scoping study
·
Mine development decision may be
advanced from Q4 2009 to Q1 2009, with possible commencement
of production in 2010
BK16
·
Drilling and bulk sampling to commence ahead of
schedule in October 2008
·
Results expected Q1 2009
Tsabong
·
Bulk sample plant modifications completed on
schedule in August 2008
·
Diamonds recovered from MK1 tailings audit; all
tailings now being reprocessed
·
First macrodiamonds recovered from MK38;
microdiamond analysis indicates potential grade of 25-30 cpht
·
LDD drilling completed on 4 other kimberlites
·
Work continues on other 79 kimberlites in the
field
Philip
Kenny, CEO of Firestone Diamonds, commented: "We have
made excellent progress in Botswana over the
past three months. In particular, we continue to be excited about
BK11, where we believe we are close to confirming its economic potential. Our
primary focus in the coming months is to complete evaluation work on
BK11 as soon as possible, with the objective of accelerating a mine
development decision to early 2009. Work at Tsabong is progressing
well and we continue to believe that the prospects for identifying
economic kimberlites in the area are good."
BK11
Substantial
progress has been made at the BK11 kimberlite in the Orapa
area, from which very good bulk sample results were reported in June 2008.
BK11 is situated approximately 20 kilometres south east of
Debswana's Orapa Mine and 5 kilometres north east of African
Diamonds' AK6 kimberlite. Follow up drilling and bulk sampling
is ahead of schedule. Since July 2008 fourteen core holes have been
drilled for approximately 1,700 metres, with
four holes remaining to be drilled. Approximately 1,000
tonnes of kimberlite will be recovered from large diameter drill
("LDD") drilling, with four 36 inch LDD
holes completed and two holes remaining to be drilled.
Material
from the LDD holes is currently being transported to the Company's
bulk sample plant ("BSP") at Tsabong for processing. A new
diamond recovery facility has also been constructed at the Company's
offices in Gaborone and diamond concentrate from BK11
and other kimberlites will be transported from the BSP to this
facility for sorting. Bulk sampling results are
expected to be available in Q4 2008, and an independent valuation of
diamonds recovered will be undertaken in Q1 2009. Work on the new BK11
pilot plant, which is being relocated to the Orapa area from the
Company's Avontuur Mine in South Africa, is on schedule and the plant is
expected to be operational in the first half of 2009.
Significant progress
has been made on the scoping study for the development of
a new mining operation to exploit BK11 and other kimberlites in
the Orapa area. The Company is now evaluating the
feasibility, subject to the results of the next stage of bulk
sampling, of accelerating a development decision on
BK11 from Q4 2009 to Q1 2009, which could allow
first production from BK11 to commence in 2010 with an initial capacity of
1 million tonnes per annum.
BK16
The
Company plans to carry out approximately 2,000 metres of
core and 800 metres of LDD drilling on BK16, which is located 20
kilometres from BK11. This work is scheduled to commence ahead of
schedule in October 2008 once drilling on BK11 has been completed. Results
are expected to be available in Q1 2009.
Tsabong
In
June 2008 the Company announced that it planned to modify the BSP in
order to enable it to process material with high clay and zircon content, such
as from the MK1 kimberlite. Since June, independent audits have been
undertaken on samples of tailings from MK1. These
audits resulted in the recovery of nine macrodiamonds and
confirmed that the BSP was not recovering all diamonds from the material
being processed. The necessary modifications were completed on
schedule in August 2008 and the BSP is now fully operational.
Approximately 36 tonnes of tailings from MK1 are currently
being reprocessed and results are expected to be available in Q4 2008.
A total
of 55 microdiamonds have been recovered from a 214 kg core
sample taken from the MK38 kimberlite. Analysis of the
size frequency distribution of the microdiamonds indicates a
potential macrodiamond grade of 25 to 30 carats per hundred
tonnes. It should be noted that this is a preliminary estimate, as between
200-400 microdiamonds are typically required to provide grade estimates with
the necessary levels of confidence. A 60
tonne LDD sample is currently being processed, with three
macrodiamonds recovered to date. Bigger LDD sampling is
planned for MK38.
LDD
drilling has been completed on four other Tsabong kimberlites. This material
has been processed through the BSP and the concentrate is in Gaborone
awaiting sorting. Work is continuing on evaluation of the 79 other
kimberlites in the field and exploration for new kimberlites.
Background
information on Firestone Diamonds:
AIM
quoted Firestone Diamonds plc ("FDI.L") is an
international diamond mining and exploration company with operations in
Botswana and South Africa. Botswana is the world's largest and
lowest cost producer of diamonds, with annual production worth over $2.5
billion, and is considered to be one of the most
prospective countries in the world to explore
for diamonds.
Firestone is
the largest holder of mineral rights in Botswana's diamondiferous kimberlite
fields, controlling over 29,000 square kilometres around the major Orapa
and Jwaneng mines and the entire Tsabong kimberlite field. Firestone has
95 kimberlites in its portfolio, of which 24 have been proven to be
diamondiferous. Sixteen of Firestone's kimberlites are at the bulk sampling
stage, of which BK11 is the most advanced. Firestone's mining operations
in South Africa include a toll treatment operation in joint
venture with De Beers at the Bonte Koe Mine.
Note:
The information in this statement has been reviewed by Mr. Tim Wilkes, B
Sc, Pr Sci Nat, who is a qualified person for the purposes of the AIM Guidance
Note for Mining, Oil and Gas Companies. Mr. Wilkes is Chief Operating Officer
of Firestone Diamonds plc and has over 27 years experience in diamond
exploration, mineral resource management and mining. Mr. Wilkes is a
member of the sub-committee for diamonds of the South African Mineral Resource
Committee (SAMREC).
For
further information:
Visit
the Company's web site at www.firestonediamonds.com, or contact:
Firestone Diamonds
Philip
Kenny +44
20 8834 1028 / +44 7831 324 645
Conduit
PR
Gareth
Tredway, Jos
Simson +44
20 7429 6603 / +44 7899 870 450
Canaccord
Adams (Joint Broker)
Mike
Jones/Ryan
Gaffney, +44
20 7050 6500
Blue
Oar (Joint Broker)
Jerry
Keen, +44 20
7448 4492/ +44 777 069 7358
Brewin
Dolphin (Nominated Adviser)
Alexander
Dewar / Sandy
Fraser
+44 141 221 7733 / +44 131 225 2566
This information is provided by RNS
The company news service from the London Stock
Exchange
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